Hocco Raises Rs 100 Crore to Expand Manufacturing and Penetrate New Markets

Ahmedabad-based new-age ice cream brand Hocco has successfully raised Rs 100 crore ($12 million) in a funding round led by its promoter group, the Chona family, and existing investor Sauce VC. The round also saw participation from notable angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar. This primary capital infusion values Hocco at Rs 600 crore post-investment.

Ankit Chona, Hocco’s Managing Director, revealed in an interaction with ET that the funds will be allocated to expanding the company’s manufacturing capacity. The eight-month-old brand anticipates generating Rs 200 crore in revenue by the fiscal year ending March 2025. The Chona family previously sold their legacy brand, Havmor, to South Korean conglomerate Lotte for Rs 1,020 crore in 2017.

Following this funding round, consumer-focused investment firm Sauce VC, known for backing brands like Mokobara and The Whole Truth, now holds approximately a 10% stake in Hocco.

"We started in October last year with high hopes, but the response has surpassed our expectations. Our plant currently produces between 40,000-50,000 liters a day, far exceeding our original projection of 15,000 liters by May. By next summer, we aim to triple our capacity to 1.3 lakh liters a day," said Chona.

India's ice cream industry, estimated at $5 billion this year, has seen several new-age brands like Noto, Get A Way, Go Zero, Frubon, and Minus 30 emerge, challenging legacy players such as Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria group-owned Cream Bell. 

Manu Chandra, founder and managing partner at Sauce VC, commented, "The expansion in the ice cream market reflects increasing disposable incomes directed towards impulse and indulgence categories. Quick commerce channels connect digitally savvy consumers who seek instant gratification for their sugar cravings, a trend that wasn't feasible five years ago."

Chona also highlighted Hocco's strategic focus on quick commerce to extend its reach beyond Gujarat, its primary market. "Our revenue is currently concentrated in Gujarat with some contributions from quick commerce, which we started in February. Sales in this channel have doubled every month," he noted. Hocco aims to double its sales in FY26 compared to FY25, targeting deeper penetration in Gujarat and expansion into Rajasthan, Maharashtra, and Delhi-NCR before next summer.

"Quick commerce is poised to be a major disruptor in the ice cream industry. It caters to the impulsive nature of ice cream consumption through 10-minute deliveries. While the challenge lies in the depth of SKUs on these platforms, the opportunity remains significant," Chona added.

In April, ET reported that Hindustan Unilever is exploring the option of spinning off its ice cream business, which accounts for around Rs 2,000 crore, or roughly 3% of its sales, potentially preparing for an eventual sale.